The American tech giant Apple (NASDAQ:AAPL) seems to be getting serious with its plan to enter the automotive segment. A recent CNBC report suggests that the iPhone maker could finalize “a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electric vehicle.” While both Apple and Hyundai haven’t provided any details about their discussions yet, Apple’s intentions to enter the automobile market are no secret.
Apple’s electric car project
In recent years, several reports and analysts have suggested how Apple could be secretly working on its car project. The company also has hired talent from the automotive industry lately and has made some acquisitions that point towards its car project.
Interestingly, Apple has hired many Tesla engineers and executives in the last few years. These recruitments gave strength to the speculations that Apple is speeding up its electric and autonomous car development work.
Why is Apple investing in cars?
You may wonder why a global tech giant like Apple — with a massive over US$100 billion quarterly sales — wants to enter the high capital-intensive auto industry. The demand for electric vehicles (EVs) and self-driving cars is surging with each passing year. EVs and autonomous cars will play a critical role in setting new standards for future smart mobility and transportation.
The smart mobility business has huge future growth potential. For example, the American chipmaker Intel predicts the mobility-based passenger economy’s global revenue to be around US$7 trillion in 2050. That’s the reason why many other tech companies — including Apple, Intel, and Nvidia — are preparing to be a part of this smart mobility and EV revolution.
One TSX stock to benefit from it
The EVs and autonomous cars will set the stage for smart mobility. That’s why if you want to be a part of the future mobility revolution like Apple, you can invest in companies that are expected to play a key role in the mobility business. The shares of such businesses could yield extraordinary returns in the long term.
BlackBerry (TSX:BB)(NYSE:BB) is preparing to be a part of the future mobility revolution in a big way. Most large automakers worldwide already use the Waterloo-based tech firm’s QNX real-time operating system in their vehicles. Now, BB is making efforts to target the fast-growing EVs and autonomous car markets.
Electric and autonomous vehicles are equipped with various types of sensors. Accessing the data of the sensors is critical for automakers to develop better products. Carmaker can also use the sensor data for a network of autonomous vehicles for their mobility services. BlackBerry recently started developing an integrated vehicle data platform that would allow automakers to access and utilize vehicle sensor data and real-time. The company is developing this platform in partnership with Amazon Web services.
Similarly, BlackBerry is also readying to expand its presence in China — the world’s largest electric car market. It recently expanded its partnership with the Chinese tech giant Baidu. BlackBerry’s QNX Neutrino operating system would be used in mass-produced electric cars in China under this partnership.
Final thoughts
Apple’s recent efforts to develop its own electric and autonomous car showcases the enormous growth potential in the future mobility market. As the growth in the mobility segment accelerates, the demand for BlackBerry’s products would surge further. BlackBerry’s stock has dropped in the last week after the Reddit trading mania faded away. It could be the best time to buy its stock cheap, I believe.
